Incentives for hiring an apprentice

Incentives for hiring an apprentice

The Government has announced that the incentive scheme for hiring apprentices will be extended. Apprentices must be aged 16 or over and must be combining their employment with studying to further their knowledge in a specific job.

Providing an apprentice was hired from 1 August 2020 to 31 March 2021, employers may be eligible for an incentive payment.


Employers now have until 30 April 2021 to make a claim for hiring an apprentice and can expect to receive their payment in two equal instalments for each apprentice. The first payment will be made once the apprentice has completed 90 days of their apprenticeship and the second payment will be made after 365 days.


The incentive is in addition to the apprenticeship levy fund and does not need to be paid back. Employers can claim the following amounts for their apprentices:

  • Those aged 16 to 24 - employers will receive £2,000
  • Those aged 25 and over – employers will receive £1,500

The incentive payment can be spent on anything which will support the costs the employer has incurred, for example uniform or the apprentice’s salary or travel costs.

Incentive rules

There are several rules that employers must follow, including continuing to pay apprentices at least the minimum wage in order to obtain the funding under the scheme.

In order to claim the incentive, employers must ensure that they have set up an apprenticeship service account. If an apprentice has already started their apprenticeship without an account, then the incentive cannot be claimed.

Unfortunately, if an employee joined the company before 1 August 2020 (even if they began their apprenticeship after this date) then the employer will be unable to make a claim for them.

The apprenticeship must last for at least 1 year and can run for a maximum of 5 years in order to be eligible for the incentive.

If you require assistance on the apprenticeship incentive or would like an apprenticeship agreement, then please call the team on 01752 663295.

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